Recent data from Santiment shows that social media opinion is running unusually high, which could make it harder for Bitcoin to reach an all-time high. The data platform recently said that for every post that is negative about Bitcoin, there are about 1.8 posts that are positive. This shows that buyers are feeling more optimistic.
This general feeling of optimism could be a problem, since markets tend to move in the opposite way of what most people think they will. Bitcoin’s price went from less than $58,000 on September 17 to over $66,000 by September 28. As of September 30, it had gone up by about 14%. This rise puts Bitcoin on track for its best September ever, with gains close to 12%.
A more positive view of Bitcoin has also started to show up in mainstream media. A top security officer named Jameson Lopp said that the story about Bitcoin is moving away from fear, uncertainty, and doubt (FUD), which shows that more people are starting to accept the digital currency.
The Bitcoin Fear and Greed Index has also returned to a level of greed, at 61. It had dropped to a low of 22 in early September, when people were very scared. It’s possible that this sudden change means the market is getting too comfortable.
There are also worries about the market for stablecoins in China right now, which is going down. When stablecoins backed by the dollar are selling at a discount, it usually means that buyers don’t trust them.
Bitcoin is selling at about $64,406, which is about 12.6% less than its March high of $73,734. In the first few hours of trading on September 30, Bitcoin dropped sharply, losing almost 2% in just six hours.
Too many positive posts on social media and outside factors suggest that Bitcoin might need to change its path before it can hit new heights. Traders and buyers should be careful and keep their hopes low because the market often responds in unpredictable ways to how people feel.
